Consumer Preference for Luxury Goods Coupled with Growing Vehicle Parc and Vehicle Production to Drive Revenue Growth of the Synthetic Leather Market
Synthetic leather offers a luxurious look to a vehicle and thus, is a significant material for auto accessories in automobiles. Hence, the growth of the automotive sector is expected to create healthy growth opportunities for the synthetic leather market. Increase in the sales of luxury goods and growth in vehicle parc and vehicle production drive the growth of the synthetic leather market. Primarily, PVC PU and Bio Based are the two types of materials used in the making of synthetic leather.
The global consumption of synthetic leather was pegged at 42,575 Thousand Tons in 2016. The global synthetic leather market was valued at US$ 36,132.9 Mn by 2016 end and is expected to reach US$ 56,334.3 Mn by the end of 2027, expanding at a CAGR of 4.2% over the forecast period. The global synthetic leather market is anticipated to represent an incremental opportunity of US$ 18,910.4 Mn between 2017 and 2027.
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Growth in Demand for Luxurious Goods to Drive the Synthetic Leather Market
Bags and Wallets will keep driving the luxury goods sector specially the women bags in personal luxury goods sector, with regard to both accessible and high-end luxury. With an increase in personal consumption, tax easing policies of the present U.S. government will leave consumers with higher disposable income, which in turn will drive the synthetic leather market. Along with this, synthetic leather market exports will see a significant jump and the consumption of bags, footwear and electronics in North America, particularly in the U.S. will drive the synthetic leather market.
Changing Consumer Preference from Natural Leather to Synthetic Leather Products
The Latin America synthetic leather market is mainly driven by three main factors, the ascent of the white collar class combined with the extending of a buyer culture, he making of convenient miniaturized scale innovations, the ascent of these patterns has made new natural markets for calfskin items, including lampshades, stockpiling boxes, lounge chairs, note pad packs, iPod cases, sunglass cases, picture outlines and wireless covers, to name a few. These are the factors that will propel the synthetic leather market as the above mentioned factors will lead to higher disposable income, which will be spent on the growth of the country’s economy. High innovations will lead to increase in productivity and quality and will increase the demand from customers. The Latin American Synthetic Leather industry is not significant in terms of volume as well as value. But, nowadays there is a rising demand for the quality product by the Applications to be utilized in the manufacturing of various consumer Luxury goods and also in the interior refurbishing sector. One of the key trends identified in the Latin America Synthetic Leather market include the demand for the PU synthetic Leather Products which is more advance and better quality synthetic leather the PVC.
Rising Disposable Income Driving the Use of Synthetic Leather in Footwear and Clothing
Growing population and general increase in disposable income have led to an increase in the demand for leather and luxury products, which is constantly driving the supply of synthetic leather as a raw material. It is expected that the supply of raw material for synthetic leather will continue to grow in step with the rising disposable income and population. With growth in spending in the U.S. and Europe being slowed by recession, Asia Pacific will face a decrease in exports and hence, will have to look within the region, rather than outside. With an increase in personal consumption and slowdown of inflation in the Asia Pacific region, it is expected that disposable income will rise and drive the footwear and clothing industries, packaging industry as well as use of synthetic leather covers for electronic gadgets, which in turn will drive the synthetic leather market.
Increasing Demand for PU Synthetic Leather Products
The Latin American Synthetic Leather market is not significant in terms of volume as well as value. But, nowadays there is a rising demand for the quality product by the applications to be utilized in the manufacturing of various consumer Luxury goods and also in the interior refurbishing sector. One of the key trends identified in the Latin America Synthetic Leather market include PU synthetic Leather market demand which is more advance and better quality synthetic leather the PVC.
Growing E-commerce Industry to Boost the Synthetic Leather Market
The Footwear ecommerce market in Eastern Europe is on an upward trend. Online shopping in footwear will drive the synthetic leather market. The formal footwear synthetic leather market segment is performing well, owing to the growing middle class, increase in women participation at work and increase in shopping centers, which will consequently drive the market for synthetic leather. Footwear makers in Eastern European nations are witnessing a decline in the domestic retail market and instead, are profiting from exporting their products. This shift in demand experienced by the footwear business is expected to continue in the future as well hence driving synthetic leather market
Other driving factors are Rebranding of cars by automobile manufacturer with affordable synthetic leather interior, Use of affordable synthetic leather in place of expensive natural leather, Substantial Growth in the Luxury items and interior refurbishment products will boost the market of synthetic leather, The demand for Low maintenance with longer life synthetic leather market. Few synthetic leather market restraints Political Disturbance and low FDI can restrain the synthetic leather market, High Tax and Import Duties and obligation on chemical products can affect the growth, Slow Rate of growth In automobile Industry may impact synthetic leather market growth.
Synthetic Leather Market Value & Volume Forecast
The overall synthetic leather market is estimated to be valued at US$ 37,423 Mn by 2017 end and is expected to reach US$ 56,334.3 Mn by 2027, projecting a CAGR of 4.2% over the forecast period.
The global synthetic leather market is estimated to account for a volume share of 44,067 (‘000 Tons) by end of 2017 and is expected to grow to 65,406 (‘000 Tons) by 2027, projecting a CAGR of 4.0% over the forecast period of 2017 to 2027. The market has been segmented on the basis of material type and application.
On the basis of material type, the global synthetic leather market has been segmented into PVC, PU and Bio Based. The PVC segment accounted for a 39.4% volume share in 2016. The PU synthetic leather market segment is pegged to grow at a faster rate, due to the ban on PVC in many countries and the superior quality of PU as compared to PVC. Bio-Based synthetic leather is still new in the market and yet in the development phase. The PVC synthetic leather market segment is projected to create total incremental opportunity of US$ 4,651.3 Mn between 2017 and 2027. The segment is expected to account for 28.3% share in the Global Synthetic leather market by 2027.
On the basis of application, the global synthetic leather market has been segmented into footwear, furnishing, automotive, clothing, bags and wallets, sports, electronics and others. The footwear segment accounted for over a 26.8% value share in 2017. High growth of the synthetic leather market segment can be mainly attributed to the change in consumer preference. Automotive is expected to be one of the attractive synthetic leather market in the forecast period. Automotive segment is estimated to account for 19.4% revenue share in the Global Synthetic Leather Market by 2017 end.
Furnishing is estimated to account for 19.1% revenue share in the Global Synthetic Leather Market by 2017 end, which is expected to dip slightly to 18.8% by 2027 end
APEJ Expected to Remain the Dominant Region in the Global Synthetic Leather Market over the Forecast Period
On the basis of geography, the global synthetic leather market has been segmented into North America, Latin America, Western Europe, Eastern Europe, Asia Pacific excluding Japan, Middle East & Africa and Japan. The APEJ Synthetic leather market accounted for a value share of 27.2% in 2016 and is projected to retain its dominance in the global synthetic leather market over the forecast period. The North America synthetic leather market is expected to represent a significantly high incremental opportunity between 2017 and 2027, while the Japan synthetic leather market is projected to expand at a significant CAGR in terms of volume over the forecast period. Sales of synthetic leather in Western Europe is expected to represent a total incremental opportunity of US$ 2,156.5 Mn between 2017 and 2027. Non-apparel end uses of needle punched synthetic leather are gaining traction in the usage of luggage, upholstery, automotive seats, panels, footwear and wall coverings.
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Prominent Players Dominating the Global Synthetic Leather Market
Some of the prominent market players in the global synthetic leather market include Kolon Industries Inc., Mayur Uniquoters Ltd, .Gruppo Mastrotto spa, Alfatex, Achilles Corp., Teijin Limited, Nan Ya Plastics Corporation, Asahi Kasei Corporation, Toray Group Kuraray Co., Ltd., Daewon Chemical Co Ltd., Leather Resource Of America Inc., Comfort Int’l Co., Ltd, Sheng Hung Industrial Co. Ltd. and Plastics Elche S.A.